- The ban will take effect June 1
- The company did not explain what it meant by “regulatory challenges.”
- The SEC had previously rejected the Filecoin Trust application on the grounds that the token met the definition of a security
Cumberland notified its customers yesterday, May 31, that it was suspending trading in the FIL token. The measure will take effect today, June 1, at 19:00 Kyiv time (16:00 UTC).
The letter to customers quoted by The Block reads:
“All transactions in FIL made before that point will be settled in accordance with normal procedures and the Master Purchase Agreement.”</nbsp;
The company explained its decision by changes in the regulatory environment. The platform did not respond to media inquiries.
However, in mid-May, the Securities and Exchange Commission (SEC) denied Grayscale the registration of the Filecoin Trust exchange product.. The regulator reasoned that the FIL native token has the attributes of a security, so additional scrutiny is needed.
Filecoin criticized the decision. According to the platform, the token is for internal settlement only, is not an investment contract and does not meet the definition of a security.
When this article was written, the FIL token was trading at $4.67 (-0.6% per day). As you can see, there was no significant reaction to the news. Yesterday, May 31, the asset was trading down 2.7%.